Morning Highlights


Highlights

  • The New York Stock Exchange temporarily closes the trading floor because of the current spread of the CoronaVirus.
  • DJIA down 475 at 19898, S&P down 53 at 2398 and NASDAQ down 101 at 6989.
  • South America currency fallout with the Brazilian Real down nearly 5% at 5.5 and the PESO at 63.32.
  • The energy markets are on the rise with crude oil trading 1-2 bucks higher at $22.20/barrel.
  • US$ continues to trade at strong levels, up 1.052 at 102.210, the gold market is up 3-4 bucks at 1481 and the CD$ nearly steady after getting thumped yesterday (currently at 0.69065).
  • The USDA’s planting intentions and March 1 grain stocks reports are scheduled for release on March 31st at 11 AM CDT.
  • StatsCan plantings report is scheduled for April 4th. 

Corn

  • The corn market let up on the throttle with prices trading 1-5 cents higher overnight.
  • May held above the $3.30 support level (so far). The nearby contract (on a continuation chart) has held at or above $3.30.
  • The last time crude oil was living around the $20/barrel, corn prices were wallowing around $2.00-$2.50.
  • South Korea buys more corn, 134k tonnes of optional origin corn for August delivery. CHS was said to awarded 65k tonnes at $192.41/tonne C&F.
  • Broiler egg sets rose 3% for the week. Cumulative egg sets sit at 223 million above last year.
  • China corn prices overnight were down 3 ¼ cents.
  • Weekly export sales estimated at 650 tmt-1.4 mmt.
  • Spreads: K/N 5 1/4 carry, N/U 5 carry, N/Z 13 3/4 c arry, Z/N1 18 carry. 

Outlook:  higher trade on overnight rebound in the oil sector, while virus concerns limit upside potential 

Oilseeds

  • The soy complex continues to rally back on hopes of increased demand for meal and logistical pickles at Brazil ports. Additional support stems from smaller 2020 US acreage ideas.
  • Weekly export sales estimates: 460 tmt-1.1 mmt for beans, 150-400 tmt for meal and 5-35 tmt for soyoil.
  • Palm oil closed down 23 ringgit at 2216 ringgit (down 54 for the week).
  • China soy complex: beans up 26 cents, meal down 4.40 and oil up 50 points.
  • Brazil struggles to get their meal shipments loaded out amongst the masses of bean shipments.
  • Spreads: K/N 5 ¾ carry, N/Q 2 carry, N/X 2 carry, Q/X 6 carry, X/F ¼ carry, X/H 12 ½ inverse, X/N1 3 ¾ inverse. 

Outlook:  higher trade on acreage ideas, struggles in Brazil, strength in crude oil and ideas of improving meal demand 

Wheat

  • Wheat prices were stronger on increased demand, grocery store sales and the possibility of some Chines wheat biz.
  • Weekly export sales estimates are 250-700 tmt.
  • Chatter yesterday was that China may be in the market for 3-5 cargoes of wheat (not necessarily spring wheat).
  • Prices garner additional support from ideas of a smaller EU crop and weather concerns in parts of Russia and Ukraine.
  • South Korea bought 136k tonnes of US wheat (soft white winter, HRW and NSW) for Aug/Sep shipment.
  • Spreads: Mpls K/N 9 ¼ carry, Kansas City K/N narrows to a 5 cent carry, Chicago K/N 1 cent inverse.
  • KC gained on Mpls this week with the MWK sitting at a 54 ½ cent premium over the KWK. 

Outlook: higher trade on improving demand, Mpls lags KC and Chicago on the idea that China’s wheat interest might not include spring wheat